It’s FREE money, so why not take it?
The Denver market is being overrun with “concessions”; not the kind you get at the movie, the kind that can save you thousands of dollars! In a perfect world, apartments will lease at “market” value. But in reality, and current conditions, “market value” is well below what investors think their apartments are worth. You need to ask the right questions AND select the right lease terms to maximize your concession discount. For example, several properties are offering 1 month free on 12-month lease or 2 months free on 15+ month leases. Take the 15-month lease and the extra month of FREE rent, please!
Other concessions can include discounts on; monthly parking, upfront fees, pet and storage fees etc. Sometimes it’s easier to ‘negotiate’ with a landlord over other fees instead of free rent. The other fees won’t hit the manager’s budget the same way and they may be willing to give you options like three months free parking, or waived application and admin fees if you lease TODAY. It can seem gimmicky, but it’s free money that you’d be shelling out otherwise. Ask the right questions OR better yet have me ask those questions FOR you! Like the song goes, “take the money and run!”
Renewal after a concession heavy lease.
Clients often ask, “The month free is great, it really help with the move; but what happens when it’s time to renew my lease?” It’s a great question and can make a huge difference financially. A local news anchor and client of Colorado Lease Up asked me how to ‘play the game’ after she had finished her first lease that contained 6 weeks of free rent. I told her to research the market, find out what other people are paying in the area. Then, look at her current community’s website; are they offering lower rates online or is she getting a really good offer at renewal? She met with the community manager and took a minimal increase in rent (3%) but still ended up paying less than advertised rents. The management company increased revenue, retained a great resident and my client gets to stay in a community that she enjoys. It’s business. You negotiate in the business world; your renewal and concessions should be handled the same way.